UEI has acquired certain of Zilog's patents and other intellectual property and assets related to its universal remote control business, including Zilog's full library and database of infrared codes, and software tools. In addition, UEI has hired Dr. Norman Sheridan, Zilog's Executive Vice President of Technology and Operations and CTO and other business, sales and engineering personnel, including all of Zilog's personnel located in India. In a related transaction, Maxim Integrated Products (NASDAQ: MXIM) acquired two of Zilog's product lines, namely, the hardware portion of Zilog's wireless control business and Zilog's secured transaction product line.

Paul Arling, UEI's Chairman and CEO, stated, "This acquisition will expand the breadth and depth of our customer base in both subscription broadcasting and original equipment manufacturing, particularly in Asia. Through additional patents and software, we have further strengthened our leadership position as a provider of wireless control solutions for which our customers will see immediate benefits. Also, we expanded our relationship with Maxim, a world-class and leading provider of high performance semiconductor products. Maxim will bring new options to UEI's current array of diverse and powerful microcontrollers. We expect this transaction to be mildly accretive in the first year and grow more significantly in the long term."

Arling continued, "We are extremely pleased to welcome Norm Sheridan and the entire technical teams in India and San Jose dedicated to universal remote control technology. These people, together with certain of Zilog's key sales and application specialists located in the US and Asia, which we are also hiring, will be integrated into UEI's existing world-class staff of professionals, resulting in a combined force of literally hundreds of years of experience in wireless control technologies and applications."

Safe Harbor Statement

This release contains statements concerning the potential benefits of UEI's acquisition of Zilog's universal remote control software and other intellectual property and related assets and personnel and of the expanded relationship with Maxim. These forward-looking statements are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.